Friends, when we think of doing any higher education, it comes to the question of money; in such a situation, we think of taking an education loan. The most important thing in education loans is interest rate.
Interest rate is a term that increases or decreases the loan amount, so before taking a loan, remember what interest rate the bank from which you are taking the loan is charging you.
In this blog post, I have compared the interest rates of top 10 banks. By reading this post, you can choose the best bank for yourself.
| BANKS | INTEREST RATE | CONTACT INFO |
| STATE BANK OF INDIA | 8.15% to 11.75% p.a. | 1800 1234 |
| PUNJAB NATIONAL BANK | 4% p.a. to 12.75% p.a. | 1800 1800 |
| HDFC BANK | 9.50% p.a. onwards | CHECK CONTACT LIST |
| ICIC BANK | 10.25% p.a. onwards | 1800 1080 |
| BANK OF BARODA | 8.15% p.a. to 14.50% p.a. | 1800 5700 |
| CENTRAL BANK | 8.10% p.a. to 10.60% p.a. | 1800 3030 |
| AXIS BANK | 13.70% p.a. to 15.20% p.a. | 1800 103 5577 |
| BANK OF INDIA | 9.25% p.a. onwards | 1800 103 1906 |
| UNION BANK OF INDIA | 8.10% p.a. to 12.50% p.a. | 1800 2222 44 |
| FEDERAL BANK | 12.55% p.a. onwards | 1800 420 1199 |
Table of Contents
SBI Education Loan Details
- Repayment Period: Up to 15 years after Course Period + 12 months repayment holiday*
- Processing Charges:
- Loans up to Rs. 20 lakhs: NIL
- Loans above Rs. 20 lakhs: Rs. 10,000 (+ taxes)
Security
- Up to Rs. 7.5 lakhs: Parent/Guardian as co-borrower, no collateral
- Above Rs. 7.5 lakhs: Parent/Guardian as co-borrower + collateral
Margin:
- Up to Rs. 4 lakhs: Nil
- Above Rs. 4 lakhs: 5% for India, 15% abroad
- Repayment starts 1 year after course completion; 15year repayment term
- EMI includes accrued interest; if interest is paid early, EMI is based on principal only.
Punjab National Bank Education Loan Details
PROCESSING FEE
- For Studies in India, NIL
- For Studies abroad 1% Minimum Rs.10000/ (Refundable after 1stDisbursement)
- For PNB Pravasi Shiksha Loan: 1% of the loan amount, Minimum Rs.10,000/ (Nonrefundable)
- For PNB Kaushal Nil
- Documentations charges
Documentations charges
- For Studies in India NIL
- For PNB Pravasi Shiksha Loan: Rs 450/
- For PNB Kaushal Nil
- Repayment same as SBI
- MORE INFORMATION ABOUT SBI LOAN SCHEME
HDFC Bank Education Loan Details
- Loan Amount: Up to Rs. 150 lakhs available for education loans
- Collateral-free Loans: Avail up to Rs. 50 lakh without collateral for select institutes
- Interest Rates: Preferential rates for top-ranked colleges and universities
- Loan Tenure: Repayment period up to 15 years with moratorium options
- Processing & Approval: Transparent process with minimal documentation and no hidden charges
- Direct Disbursement: Loans are disbursed directly to the institution based on fee structure
- EMI Options: Pocketfriendly EMI repayment options tailored to your needs
- Collateral Choices: Choose from Residential Property, HDFC Bank Fixed Deposit, Debt Mutual Funds, Insurance Policies, NSC/KVP
- Tax Benefit: Save on taxes with a Section 80E rebate on loan interest
- Insurance: The loan can be insured with Credit Protect from HDFC Life; the insurance amount included in the loan amount
ICICI Bank Education Loan Details
- Nationality: Indian
- Age: Minimum 16 years, Maximum 35 years
- Academic Record: Proven good
- Qualification: Completed 10+2 (12th Standard)/Diploma
- Pursuing: Graduation/Postgraduate Degree or a PG diploma in professional education
- Universities: Listed, recognized, and accredited institutes in India and overseas
- Loan Sanction Criteria: Preadmission sanction, Entrance exam scores like GRE, GMAT, etc., 12th/HSC results, Confirmed admission
- Loan Amount: Domestic Up to Rs. 1 crore, International Up to Rs. 2 crore
- Co-borrowers: Father, Mother, Brother, Sister, Spouse (Husband/Wife), Grandparents, Parentsinlaw, Maternal/Paternal Uncle
- Security Options: Property (house or flat), FD (Fixed Deposit), Existing ICICI Bank Home Loan for cross-collateral
Bank of Baroda Education Loan Details
- No Collateral for Premier Institutes
- Moratorium Period: Course Period + 1 year
- No prepayment charges
- Attractive Interest Rates starting from 8.15%*
- Processing Charges: NIL
- 100% Finance available
- Repayment period up to 15 years after the moratorium period (Course Period + 12 Months)
- Digital Education Loan Facility
- Special offer for students of Army Personnel
- Caution deposit, Building fund/refundable deposit supported by institution bills/receipts covered
- Insurance premiums for student borrowers included
- Additional expenses like study tours, project works, thesis, etc., are covered.
- Co-applicant requirement waived for select Premier Institutes.
- Unified processing charges: NIL
- Flexible Repayment period based on the loan amount:
- Loans up to Rs. 7.50 Lac: Moratorium Period + Maximum 120 installments
- Loans above Rs. 7.50 Lac: Moratorium Period + Maximum 180 instalments
- Penal Charges:
- Loan up to Rs. 2,00,000/: 1% p.a. on the amount of default
- A loan above Rs. 2,00,000/: 2% p.a. on the amount of default
- Penal charges are applied solely to overdue payments beyond the due date, calculated based on an actual number of days of default and debited monthly.
Central Bank Education Loan Details
Central Bank does not provide educational loan information on its website for more details.
Call customer care
Axis Bank Education Loan Details
- Access to 100% Loan Financing: Axis Bank offers education loans starting from Rs 50,000 with no upper limit, covering up to 100% of the total education cost.
- Financing for Living Expenses: The bank covers living expenses, including travel, food, and accommodation while you’re studying.
- Quick Disbursal: Funds are transferred within two days of loan approval, with options for emergency fund customization.
- PreAdmission Sanction Letter: Axis Bank provides a provisional loan sanction letter even before securing admission, which is useful for providing financial support during the admission process and visa applications.
Bank of India Education Loan Details
Advantages
- No documentation charges
- No hidden charges
- No prepayment penalty
- NIL processing charges
- No collateral security required up to Rs. 7.50 Lakhs
- Nil margin required up to Rs. 4.00 Lakhs
- Takeover of loan facility from other banks available
Features
- Education loans for higher studies in India (regular full-time Degree/Post Graduation courses)
- Loan amount up to Rs. 150 Lakhs considered for both medical and non-medical courses in India
Union Bank of India Education Loan Details
Purpose
- Provide education loans to deserving students for higher/professional/technical education in recognized institutions in India and abroad.
Student Eligibility
Indian national with admission secured in India or abroad for higher/professional/technical education.
NRI students must hold an Indian Passport and have secured admission for studies in India only.
Age of the Student
No restrictions on minimum or maximum age.
CoApplicant
The parent (s) of the student must join as a co-applicant.
For married individuals, spouse/parent(s)/parent(s)inlaw can be co-applicants.
A close relative or guardian can be a co-applicant if both parents are not alive.
Applicant must be an Indian national.
Eligible Courses
Courses covered in India: Graduation/postgraduation/diploma courses, technical/professional/management courses, PhD courses.
Courses covered outside India: Graduation/postgraduation degrees, certified degree courses by recognized institutes, PhD courses (diploma courses abroad not covered).
Loan in Subsequent Years:
Loans can be considered for eligible students in subsequent years if not availed from any other bank/FI initially.
Quantum
No maximum limit on the loan amount.
Maximum quantum for NRI students: Rs. 20 Lakhs (Rs. 30 Lakhs for premium institutes).
Margin
Up to Rs. 4 Lakh: Nil margin.
Above Rs. 4 Lakh (Studies in India): 5% margin.
Above Rs. 4 Lakh (Studies abroad/NRI students): 15% margin.
Expenses Considered
Tuition fees, hostel/mess charges, exam/library/laboratory fees, insurance premiums, caution deposit, purchase of books/equipment, travel expenses, admission fees, project work expenses, etc.
Repayment Tenure
Maximum 15 years after the course and moratorium period.
Interest accrued during moratorium added to principal for EMI calculation.
Rate of Interest
Varies as per current rates, with interest rebate for regular servicing.
Simple interest during course/moratorium; compounding interest after that.
Education Loan Security
No security up to Rs. 4 Lakh (covered under CGFSEL).
Third party guarantee or tangible collateral required for higher loan amounts.
Insurance
Mandatory life insurance for the student is equivalent to the loan amount.
Other Conditions
Loan disbursed from nearest branch to student’s domicile.
Apply online or contact the nearest branch for details.
FEDERAL BANK Education Loan Details
- Speedy loan approval process
- Loan available for higher studies in India & Abroad (excluding vocational training & skill development courses)
- Loan amount up to Rs. 10 Lakhs for studies in India and up to Rs. 20 Lakhs for studies abroad
- No security is required for loans up to Rs. 4 Lakhs
- Minimal paperwork
- No repayment during the moratorium period; repayment in easy EMIs after the moratorium
Read this post - Get loan with 0 interest rate – student loan app
FAQ
Which bank has lowest interest rate education loan?
Punjab National Bank is offering educational loan at the lowest interest rate.
How to check lowest educational loan interest rate?
I have given the list of interest rates of top 10 banks on my website for you. If you are taking an educational loan then read the list once.
SBI vs PNB interest rate comparison
SBI and PNB are both government banks, both banks have their own schemes but PNB will give you loan at lower interest rate than SBI.
Which bank is best for an educational loan
Keep some things in mind before taking loan from any bank.
Interest rate
Processing fee
Repayment duration
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